BRUSSELS (AP) 鈥� The European Union is launching an investigation into subsidies that China provides to electric vehicle makers, the head of the bloc鈥檚 executive branch said Wednesday, as concern grows that the aid is harming European companies.
鈥淕lobal markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies. This is distorting our market,鈥� European Commission President Ursula von der Leyen told EU lawmakers in Strasbourg, France.
鈥淎s we do not accept this distortion from the inside in our market, we do not accept this from the outside,鈥� von der Leyen said. 鈥淪o, I can announce today that the commission is launching an anti-subsidy investigation into electric vehicles coming from China.鈥�
China鈥檚 leaders have helped make the country the biggest market for electric vehicles by investing billions of dollars in subsidies to get an early lead in what is seen as a promising industry.
Global automakers face growing competition in their home regions from Chinese brands that are taking market share.
Electric vehicle makers including BYD Auto and Geely Group鈥檚 Zeekr unit began sales this year in Japan and Europe. Geely also owns Sweden鈥檚 Volvo Cars and its all-electric luxury brand, Polestar.
鈥淓urope is open to competition but not for a race to the bottom. We must defend ourselves against unfair practices,鈥� von der Leyen said. She did not provide details about the investigation.
The Associated Press
